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US stocks rise on strong economic data

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(Globalpost/GlobalPost)

US stocks closed higher Tuesday helped by data showing more strength and confidence in the US economy and as worries eased over a credit crunch in China.

The Dow Jones Industrial Average gained 100.75 (0.69 percent) at 14,760.31

The broad-based S&P 500 added 14.94 (0.95 percent) at 1,588.03, while the tech-rich Nasdaq Composite Index rose 27.13 (0.82 percent) to 3,347.89.

While bond yields continued to push higher, investors focused on signs that the US economic growth was firming.

New orders for durable goods surged 3.6 percent in May on the back of aircraft sales, and housing prices added a huge 2.5 percent in one month.

In addition, the Conference Board's consumer confidence index jumped to 81.4, up from 74.3 in May.

After weeks of selling in spite of signs of stronger growth, "we may be at a point were good news is good news," said Art Hogan of Lazard Capital Markets.

Troubled bookseller Barnes & Noble plunged 17.1 percent after it reported a $119 million loss in its fiscal fourth quarter, compared with $57 million a year earlier, with its Nook tablet division racking up $177 million in red ink.

Walgreens shares sank 5.9 percent after the drugstore chain missed revenue and earnings estimates in its fiscal third quarter earnings.

"Our front-end sales are still not up to our expectations, and while the economy remains challenging, increasing customer traffic and front-end sales are our near-term priorities with a focus on pricing and promotion and the leveraging of our Balance Rewards program," said Greg Wasson president and chief executive.

Sprint shares were up 0.3 percent after shareholders gave their approval to Japanese firm SoftBank's takeover bid. Broadband carrier Clearwire, part-owned by Sprint and also targeted by SoftBank in its US wireless strategy, rose 0.4 percent.

Trouble-plagued cruise ship operator Carnival rose 5.0 percent after chief executive and chairman Micky Arison gave up his CEO position after holding the job for 34 years.

Bond prices continued to sink. The yield on the 10-year US Treasury rose to 2.59 percent from 2.55 percent Monday, while the 30-year increased to 3.61 percent from 3.56 percent. Bond prices move inversely to yields.

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http://www.globalpost.com/dispatch/news/afp/130625/us-stocks-rise-strong-economic-reports